Missha making a strong case as market favoriteThe battle between low-priced cosmetic brands Missha and The Face Shop is heating up as the peak sales season approaches.
According to a tentative earnings disclosure yesterday by?Able C&C, which owns Missha, the brand’s third-quarter sales outstripped those of its chief rival by 15.8 billion won ($14.4 million).
For the first nine months, however, The Face Shop, which is owned by LG Household and Health Care, held the top spot with sales of 292.1 billion won, narrowing beating Missha’s 285.9 billion won.
Missha opened the door for affordable cosmetics brands in the early 2000s and there are now around 20 such brands saturating the Korean market, including Nature Republic, Skin Food, Etude House and Innisfree.
The Face Shop, which lost its No.1 spot to Missha six years ago, reclaimed the honor earlier this year and saw the gap widen due to its aggressive marketing and robust sales.
But Missha hung in and narrowed the gap from 20 billion won to 6 billion won in the third quarter through various promotions and sales events. Another monthlong sale planned for December could see it emerge as the top dog by Christmas, analysts say.
“Missha’s sales have risen significantly in the last two quarters. If this trend continues, we are confident it will emerge as the top earner in this industry segment this year,” said an employee at Able C&C.
A spokesperson for The Face Shop said it has also maintained strong sales and aims to wins over more consumers by improving quality of the products using LG’s cutting-edge technology.
By Kim Jung-yoon [firstname.lastname@example.org]